You might be wondering if there are any tax advantages to selling your home. Yes, it is correct. Make sure you don’t miss any of them by checking out this list.

1. The cost of selling
These deductions are allowed if they are directly tied to the sale of the home and you lived in it for at least two of the five years before the sale. Another restriction is that the house must be used as a primary residence rather than as an investment.

2. Repairs and renovations to the house
You can deduct the cost of updating a few rooms to increase the value of your home (and thus fetch a higher sale price). Such jobs include painting the house, repairing the roof, and replacing the water heater.

3. Taxes on real estate
The maximum deduction, according to Zimmelman, is $10,000. You can deduct the amount you paid in property taxes last year, up to $10,000, assuming you paid them regularly up until the time you sold your home.

4. Mortgage interest rates
Mortgage interest, like property taxes, can be deducted for the portion of the year you own your home.

5. A capital gains tax is imposed on sellers
Although the capital gains rule is an exclusion rather than a deduction, you’ll welcome it anyway. To summarize, capital gains are the funds left over after paying off your bills and any remaining mortgage debt when you sell your home.

For more real estate-related tips, contact me today!